RBI’s disclaimer note on merger of Lakshmi Vilas Bank (LVB) and Indiabulls Housing Finance Limited (IBHFL)

Reserve Bank of India (RBI) in its press release announced that it has learnt merger of Lakshmi Vilas Bank (LVB) and Indiabulls Housing Finance Limited (IBHFL)through media. As per media news above entities have made a merger announcement on April 5, 2019 with approval of their respective Boards. RBI’s disclaimer said that a section of the media that the presence of two nominee directors of the RBI on the Board of LVB implies RBI’s indirect approval of the proposal. The banking regulator clarified that the merger announcement does not have any approval of RBI at this stage and presence of Additional Directors nominated by the RBI on the Board of LVB does not imply any approval of the RBI of the merger proposal. Moreover, the Additional Directors have clearly mentioned at the meeting that they have no view on the proposal.

RBI communique said that the proposals, as and when received from these entities, will be examined in RBI as per extant regulatory guidelines/directions.

Surendra Naik

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Surendra Naik

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